No Plan Yet to Raise Petrol Ethanol Blend Beyond 20%, Says Government

The government has no immediate plan to increase ethanol blending in petrol beyond the current 20 per cent level, Minister of State for Petroleum and Natural Gas Suresh Gopi informed the Rajya Sabha on Monday. He said any future increase would be considered only after detailed scientific and technical studies along with consultations with automobile manufacturers, oil marketing companies and research institutions.

Responding to a parliamentary question, Gopi said India had achieved the 20 per cent ethanol blending target ahead of schedule during the 2025-26 ethanol supply year. The programme, launched through a phased approach over more than two decades, has increased ethanol blending from around 1.53 per cent in 2013-14 to 20 per cent currently.

The minister highlighted the economic and environmental benefits of the Ethanol Blended Petrol (EBP) Programme, stating that it has helped save over ₹1.97 lakh crore in foreign exchange, reduced crude oil imports by nearly 316 lakh tonnes, avoided around 952 lakh tonnes of carbon dioxide emissions, and generated more than ₹1.66 lakh crore in additional farmer income.

Addressing concerns over vehicle performance, Gopi said the government has received no widespread or verified complaints from automobile manufacturers, industry associations or consumers regarding engine failures, corrosion, fuel pump issues or water contamination due to E20 fuel. He added that over 20 crore two-wheelers and more than 3 crore petrol cars have operated on higher ethanol blends without any confirmed evidence of large-scale damage.

The minister said mileage reduction in older vehicles designed for E10 fuel remains marginal at around 3-5 per cent, while E20 provides benefits such as higher octane levels and cleaner combustion. On concerns related to food security, Gopi said ethanol production uses only surplus grains after meeting requirements under the Public Distribution System and buffer stock norms. He added that the government is diversifying feedstocks, with maize contributing about 37 per cent of ethanol production in 2025-26.

Oil marketing companies procured 705.43 crore litres of ethanol worth ₹49,577 crore during 2025-26 up to June 30. The government also ruled out introducing separate outlets for non-blended petrol, stating that such a move would increase costs and weaken the environmental and agricultural benefits of the ethanol programme.